2% pay deals dominate reward scene
New XpertHR data again underlines the ‘subdued nature’ of pay awards for UK employees. In the three months to the end of November 2015, the median uplift was 2%. As many as 28% of all pay awards so far this year have been worth 2%.
- In the private sector the median pay award also stands at 2%, although the middle half of pay awards fall within the range of 1.5% to 2.9%.
- XpertHR’s analysis of pay awards in the public sector is calculated on an annual basis (as they are bunched in just a few months of the year). In the year to the end of November 2015, pay awards in the sector were worth a median 1.5%, with half of all awards worth between 1% and 2%.
- XpertHR has also looked at how different industry sectors have fared in 2015. The majority have recorded a median 2% pay award, but there are a couple of exceptions.
- The construction sector tops the table, recording a median 2.5% pay award this year – the only sector higher than the whole-economy measure.
- At the other end of the scale, the not-for-profit sector is the only one falling below the norm, with a median pay award of just 1.5%.
Sheila Attwood, XpertHR pay and benefits editor, said:
‘Pay awards have been centred around 2% for several years now, and there is no reason to believe that this will change as we move into the new year. Private-sector employers have forecast a median 2% pay award next year, and although inflation is expected to rise during the year, employers continue to focus on their ability to pay when it comes to setting the value of any increase.’
